Petrofac Share Discussion Threads

[investtofly] 25/4/2024 12:44

I thought more would have dumped by now it that were the case imo.

[dipa11] 25/4/2024 12:41

Same thing repeated today also. "Bolts is doing deals same price & same number of shares and surprisingly repeated 3 times frequently. Few deals has gone through since morning."DYOR

[blackhorse23] 25/4/2024 12:22

It will get worst before gets any better , D4E is not a good sign

[fiscal cliff] 24/4/2024 23:26

Dear oh dear.

[dipa11] 24/4/2024 14:09

Bolts is doing deals same price & same number of shares and surprisingly repeated 3 times frequently. Few deals has gone through since morning. DYOR

[jaknife] 24/4/2024 12:13

Miena,

"@JakNife & the other thing that I picked up from that RNS was their closing statement:

The discussions with lenders and other stakeholders continue at pace and further announcements will be made as appropriate.

Make of it what you will...

I'm not sure what you think that this means other than what the words plainly say? Negotiating a debt for equity swap at the same time as also negotiating a fresh equity raise at the same time as also negotiating the disposal of non-core assets is not a simple task!


"Shorts are reducing and the share price has for the 3rd day in a row followed the same pattern, which suggests to me that Shorts aren't finished yet...
Why would they reduce if a D4E was inevitable?? Good Risk Management??"

The available borrow for Petrofac has dried up in recent weeks and many shorts have had their positions recalled because the borrow is no longer available. This happens because the longs on the other side of the trade have decided to sell their positions and hence, quite simply, the borrow is no longer there!


"If I was Short I would have never reduced knowing a D4 E was inevitable..."

I would bet that you've never shorted anything? Lot's of retail punters are long only and don't actually understand what they're talking about when it comes to shorting.

At the start of the week the overnight borrow for Petrofac, on the Interactive Broker platform, hit 350%. Are you certain that you'd still keep your short open if you had to pay a 350% borrow charge?

JakNife

[loglorry1] 24/4/2024 12:07

4 and a bit trading days left in April for PFC to unveil what they are going to do.

[topazfrenzy] 24/4/2024 11:54

Next RNS regarding financing should take it down straight to 10p

[miena] 24/4/2024 11:51

@JakNife & the other thing that I picked up from that RNS was their closing statement:

The discussions with lenders and other stakeholders continue at pace and further announcements will be made as appropriate.""

Make of it what you will...

Shorts are reducing and the share price has for the 3rd day in a row followed the same pattern, which suggests to me that Shorts aren't finished yet...
Why would they reduce if a D4E was inevitable?? Good Risk Management?? as @gheckotheglorius so cleverly pointed out to me...

I definitely have a lot to learn before I become a big player like you chaps!!

If I was Short I would have never reduced knowing a D4 E was inevitable...

[jaknife] 24/4/2024 11:41

Miena,

I agree, you've not read it correctly, the key is the two words "It also" at the start of the second sentence. This means that the paragraph splits into two separate parts:

A. "The Company has engaged and remains in discussions with its lenders to restructure its debt which would result in a significant proportion of the debt being exchanged for equity in the business."

There will be a debt for equity swap.

B. "It also continues to be in discussion with prospective investors and certain major shareholders in relation to potential further investment in the Company and remains in negotiations with prospective purchasers regarding the sale of non-core assets, as set out in recent announcements. All options remain under consideration. [my bold]

In addition to the D4E swap Petrofac is also investigating ways to raise additional funds.

The two are separate activities.

JakNife

[miena] 24/4/2024 11:20

@JakNife - ""The key is to actually read the company's RNSs:""

So let's practice what you preach... The RNS stated the following:

The Company has engaged and remains in discussions with its lenders to restructure its debt which would result in a significant proportion of the debt being exchanged for equity in the business. It also continues to be in discussion with prospective investors and certain major shareholders in relation to potential further investment in the Company and remains in negotiations with prospective purchasers regarding the sale of non-core assets, as set out in recent announcements. All options remain under consideration.



Management and the Board are focussed on managing the Group’s payment obligations and delivering a solution which supports the provision of guarantees required for its recent contract awards, and which ensures that Petrofac has the appropriate capital structure and liquidity to support the strength of its US$8 billion backlog.

Clearly I can't read because there are 3 options the way I read it!

[jaknife] 24/4/2024 11:02

Miena,

"I take it that you have a seat at the PFC boardroom table, otherwise how else would know that a massive D4E is incoming..."

The key is to actually read the company's RNSs:

"The Company has engaged and remains in discussions with its lenders to restructure its debt which would result in a significant proportion of the debt being exchanged for equity in the business." [my bold]

See:

JakNife

[miena] 24/4/2024 10:52

@geckotheglorius I take it that you have a seat at the PFC boardroom table, otherwise how else would know that a massive D4E is incoming...

This is excellent news because up until now us mere mortals were under the impression that 3 options were on the table & you have now confirmed that a D4E is the only option!

It's not what you know, it's who you know... as they say... & guess what we know @geckotheglorius and he knows everything!

[halfpenny] 24/4/2024 10:24

Some say target 14p or even less.

How Low??

[geckotheglorious] 24/4/2024 10:21

Miena

Yeah the numbers dont lie - massive D4E coming because the company hasnt made a profit in years, despite winning all these multi billion pound contracts (wafer thin margins at best)

Never said the shorts werent reducing either fyi.

You're speculating incorrectly as to why...

[miena] 24/4/2024 08:56

Thanks for the lesson in Risk Management'' @Geckotheglorius. The self-appointed trading oracle that knows nothing... clearly your opinion is the only one that matters!

Numbers don't lie... shorts are reducing and the pattern will continue into today and the remainder of the week with the dump arriving Friday and Monday.

[geckotheglorious] 24/4/2024 08:22

Miena,

To put things in perspective shorts are simply taking a decent profit.


If youre short from 120, or 100 why would you not take some profit?

It's called risk management

[hmgouda] 24/4/2024 07:35

Hopefully this is the case, as they might close now and open at a higher price. Let us hope for the best outcome for genuine shareholders.

[miena] 24/4/2024 07:18

To put things into perspective here...If shorts were so confident they wouldn't be closing at all!

[miena] 24/4/2024 07:10

Back to back days of short reductions... I anticipate this will continue into the remainder of the week with a big dump arriving on Friday.

Will be interesting to see where the share price closes EOW - closer to 30p me thinks...

[dudishes] 24/4/2024 00:20

I appreciate that JacNife does the research.

I just sliver the throat.

[dudishes] 24/4/2024 00:17

WD Geck. Up to one.


Short @ 23.7 and 25. Think I'm losing. But for how long?

[geckotheglorious] 23/4/2024 20:38

And some from 120p!!!
Not me, Im not short, nor would I ever short.

So 120 to 15p.
15p to 25p

Yeah miena, theyre wetting their knickers.

Good grief.

[dudishes] 23/4/2024 20:29

You have to take into consideration the shorts that have been in excistance since 100p and 80p.

Announced is around the 10.33%, one would suggest nearly 25%.

Easy numbers.